If a company generates a profit and distributes some of this as dividends, then profit ends up being:
A) never taxed
B) taxed twice
C) taxed once
D) taxed three times

Question

Quizplus · Accepted Answer

Corporate profits are taxed at the corporate level, and when dividends are distributed to shareholders, they are taxed again at the individual level, resulting in double taxation.

If a Company Generates a Profit and Distributes Some of This